Mortgage Interest Rate Update ~ As of February 17th, 2023

MBS Highway Wrap Up:

• Mortgages are looking to end the week on a high note after getting pummeled throughout the month so far.

• BofA and Goldman have both raised their Fed Funds forecast this week

• We’ll see plenty of data in the holiday-shortened week ahead, with PMI, GDP, Weekly Claims, Personal Spending and New Home Sales.

The FED

• After the “stronger” than expected Jobs report, and slower progress on inflation than expected in January, Fed members are once again talking tough.

• James Bullard, who we have to remember is always an outlier and said he wants the Fed Funds rate at 7%, said he was in favor of a 50bp hike at the last meeting and wants 50bp at the March 22 meeting.

• Mester and Kashkari also echoed those same thoughts…but remember these were the same individuals that said inflation was not a problem and said the Fed did not have to do anything. After being so wrong, it appears they are not trying to make the same mistake twice, and are talking tough on future hikes.

• But Fed Chair Powell was pretty clear that the Fed would do 25bp hike from here. And The Fed may have already done enough, as Fed hikes take a long time to fully be felt by the economy. We are also seeing inflation come down significantly from the peaks, and even though the January data was a disappointment, there is clear disinflation in the pipeline. Shelter will catch up, and we expect the March 14 report to be favorable.

• While it seems that the good news is a million miles away with the recent jump in yields, we do expect the next Jobs report, on March 10 , to show slower jobs growth. It will not include the adjustments we saw in January. And as we have gone over, future inflation reports will show much more progress, especially once shelter costs catch up.

#denver #colorado #denvercolorado #denvermetro #denverrino #boulder #colorado #longmontcolorado

Interest Rate Update: [GRARate.com/ToddMerrifield]

1 Sample monthly Principal and Interest (P&I) payment of $2,947.64 is based on a purchase price of $600,000, down payment of 20%, 30 year fixed rate mortgage, with 0.991% Discount Point and rate of 6.225%/6.386% APR (annual percentage rate). Advertised rates and APR effective as of 2/17/23 and are subject to change without notice. Above scenario assumes a first lien position, 620 FICO Score, 45 day rate lock on a primary residence and are subject to change without notice.

• Fannie Mae HomeReady, meeting 80% of Area Median Income Limit ** Example AMI 80% Income limit in Denver Zip Code 80222 = $94,240 for max income

2 Sample monthly Principal and Interest (P&I) payment of $2,947.64 is based on a purchase price of $600,000, down payment of 20%, 30 year fixed rate mortgage, with 0.991% Discount Point and rate of 6.225%/6.386% APR (annual percentage rate). Advertised rates and APR effective as of 2/17/23 and are subject to change without notice. Above scenario assumes a first lien position, 620 FICO score, 45 day rate lock on a primary residence and are subject to change without notice.

• First Time Home Buyer Program, meeting 100% of Area Median Income & up to 120% Area Median Income for high cost areas ** Example AMI for 100% AMI to 120% AMI High Cost limit - in Denver Zip Code 80222 = $141,360 for max income Limit and 1 of the borrowers on the loan needs to be a first time home buyer.

3 Sample monthly Principal and Interest (P&I) payment of $3,073.49 is based on a purchase price of $600,000, down payment of 20%, 30 year fixed rate mortgage, with 0.726 Discount Point and rate of 6.625%/6.765% APR (annual percentage rate). Advertised rates and APR effective as of 2/17/23 and are subject to change without notice. Above scenario assumes a first lien position, 740 FICO score, 45 day rate lock on a primary residence and are subject to change without notice. 4 Sample monthly Principal and Interest (P&I) payment of $3,985.97 is based on a purchase price of $600,000, down payment of 20%, 15 year fixed rate mortgage, with 0.968% Discount Point and rate of 5.75%/6.007% APR (annual percentage rate). Advertised rates and APR effective as of 2/17/23 and are subject to change without notice. Above scenario assumes a first lien position, 740 FICO score, 45 day rate lock on a primary residence and are subject to change without notice. 5 Sample monthly Principal and Interest (P&I) payment of $5,050.85 is based on a purchase price of $1,012,000, down payment of 20%, 30 year fixed rate mortgage, with a 0.762 Discount Point and rate of 6.375%/6.498% APR (annual percentage rate). Advertised rates and APR effective as of 2/17/23 and are subject to change without notice. Above scenario assumes a first lien position, 740 FICO score, 45 day rate lock on a primary residence and are subject to change without notice. 6 Sample monthly Principal and Interest (P&I) payment of $6,886.66 is based on a purchase price of $1,012,000, down payment of 20%, 15 year fixed rate mortgage, with 0.916% Discount Point and rate of 6.125%/6.350% APR (annual percentage rate). Advertised rates and APR effective as of 2/17/23 and are subject to change without notice. Above scenario assumes a first lien position, 740 FICO score, 45 day rate lock on a primary residence and are subject to change without notice. 7 Sample monthly Principal and Interest (P&I) payment of $2,983.02 is based on a purchase price of $500,000 down payment of 3.50%, 30 year fixed rate mortgage, with a 0.775% Discount Point and rate of 6.125%/7.287% APR (annual percentage rate). Advertised rates and APR effective as of 2/17/23 and are subject to change without notice. Above scenario assumes a first lien position, 740 FICO score, 45 day rate lock on a primary residence and are subject to change without notice. 8 Sample monthly Principal and Interest (P&I) payment of $3,107.93 is based on a purchase price of $500,000, down payment of 0.00%, 30 year fixed rate mortgage, with 0.693% Discount Point and rate of 6.125%/6.473% APR (annual percentage rate). Advertised rates and APR effective as of 2/17/23 and are subject to change without notice. Sample does not include VA funding fee (max VA funding fee of 3.6%). Down payment requirements subject to conforming county loan limits and remaining balance of borrower’s VA entitlement. Loan amounts that exceed the conforming county loan limits will require a down payment. Must be an eligible veteran. Subject to underwriting guidelines and applicant’s credit profile. Sample payment does not include taxes, insurance or assessments. Actual payment obligation will be greater. Not all applicants will be approved. Restrictions apply. Contact Guaranteed Rate Affinity, LLC for more information and up to date rates. Some of the products featured are only available for first time home buyers. Other products listed may be available to you if you are not a first time home buyer. Please speak with a Guaranteed Rate Affinity, LLC loan originator to discuss your available options. Guaranteed Rate Affinity, LLC has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency.

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Todd Merrifield

NMLS# 406286

VP of Mortgage Lending

(720) 884-7816(720) 884-7816(872) 302-2658Email MeVisit My Website

600 Grant St Ste 900 Denver, CO 80203

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